The Vedanta Ltd. Won the Appeal against erroneous rebate demand in Central Excise Case.
Facts
The appellant M/s. Vedanta (Formerly known as M/s. Sterilite Industries Ltd) are engaged in manufacture of copper anode, sulphuric acid, anode slime, phosphoric acid etc. They are availing Cenvat Credit on inputs, input Services and capital goods.During the period from February 2012 to March 2012, the appellant filed two rebate claims being the duty paid by them on the export of copper cathode, anode slime and selenium powder falling under chapter heading 74031100, 71129990 and 28049000 respectively. After due process the Assistant Commissioner, Tuticorin Division, sanctioned the entire rebate claim.
Show Cause Notice dated 07.11.2012 was issued to appellant proposing to recover the erroneously granted rebate along with interest. After due process of law, the original authority vide order impugned herein confirmed the demand of Rs. 35,34,86,306/- along with interest holding that the rebate has been sanctioned erroneously.
Submissions
Counsel Akshit Malhotra for the appellant submitted that against the sanction of refund the department has filed revision before the government and the same is pending.
He submitted that for the earlier period (August 2011 to Jan 2011) the department had issued similar notice and upon the confirmation of demand by the original authority, the appellant had filed appeal before the Tribunal. Taking note of the fact that the clarification from CBEC is awaited, the Tribunal vide Final Order remanded the matter to the adjudicating authority. In denovo proceeding, the adjudicating authority vide order-in-original, set aside the demand based on the clarification issued by Board.
Decision
The division bench of Sulekha Beevi C.S., Member (Judicial) And Vasa Seshagiri Rao, Member (Technical) observed that the Board vide Circular dated 14.07.2015 has clarified that duty is payable on anode slime. Being so, the rebate sanctioned in regard to anode slime exported is legal and proper. The demand confirmed by the adjudicating authority cannot sustain and requires to be set aside.
Case title: M/s. Vedanta Ltd. v/s The Commissioner of Central Excise & Customs
Citation: Excise Appeal No. 42420 of 2013
